Keppel O&M secures repeat newbuild FPSO contract worth US$2.8b from Petrobras

Keppel Offshore & Marine (Keppel O&M)’s wholly owned subsidiary, Keppel Shipyard, has won a tender from Brazil’s National Oil Company, Petroleo Brasileiro S.A (Petrobras), to undertake the engineering, procurement and construction (EPC) of P-83, a Floating Production, Storage and Offloading vessel (FPSO), for about US$2.8b.

Scheduled for delivery in 1H 2027, the P-83 is a repeat order of the P-80 FPSO that Keppel O&M secured in August this year. The contract will be on progressive milestone payments and adds approximately S$3.8b to Keppel O&M’s orderbook bringing it to about S$11.8b.

As a repeated order, the P-83 will be identical to the P-80 in specifications and execution methodology. It will build on the synergies reaped from the P-80, including adapting the design and engineering as well as leveraging economies of scale in the procurement of materials. The fabrication of the topside modules will be replicated across Keppel O&M’s facilities in Singapore, China and Brazil, while the construction of the hull and accommodation module will be done by CIMC Raffles in China. Integration of the separate components will be carried out in Singapore, with the final phase of offshore commissioning works undertaken by Keppel O&M when the FPSO arrives at the Buzios field.

The P-83 will be the third FPSO that Keppel O&M is building for Petrobras for the Buzios field. In addition to the P-80, Keppel O&M is currently working on the P-78 FPSO which was awarded in May 2021.

When completed, the FPSOs will be among the largest floating production units in the world. The P-83 has a production capacity of 225,000 barrels of oil per day (bopd), water injection capacity of 250,000 bpd, 12 million cubic metres of (Sm3/d) of gas processing per day and a storage capacity of two million barrels of oil.

Mr Chris Ong, CEO of Keppel O&M, said, “We are pleased to be awarded a third newbuild turnkey FPSO by Petrobras. It is a testament to the strong track record of the projects we have delivered to Petrobras over the years and reflects their confidence in Keppel O&M as a partner in the development and construction of high quality, sustainable and robust production units.

“We are able to draw insights from the first of our newbuild FPSOs, the P-78, which is progressing well and contributing to Keppel O&M’s earnings. As the P-83 and P-80 are identical units, greater economies of scale and productivity gains can be expected as we are able to further optimise the engineering and construction process, as well as fully leverage technology and the seamless coordination with our partners in the execution. We look forward to delivering all our projects safely, on time and within budget to our valued customer Petrobras.”

Petrobras operates the world’s largest carbon capture, utilisation, and storage (CCUS) programme. The P-83, P-80, and P-78 FPSOs will be equipped with green technologies such as CCUS to separate the carbon, reinject it back into the reservoir where it is stored and minimise the need for gas flaring. The FPSOs will also feature energy recovery systems for thermal energy, waste heat and gas, as well as seawater deaeration to reduce the consumption of fuel and the carbon emissions of the vessel.

Keppel O&M has delivered a significant number of projects for Brazil and Petrobras over the years, including FPSOs, production platforms, Floating Storage Regasification Units, drilling rigs and accommodation vessels, to support Brazil’s energy infrastructure. BrasFELS, Keppel O&M’s yard in Angra dos Reis, Brazil is currently also undertaking integration and fabrication work for two other FPSOs that will operate in the Sepia field and the Buzios field.

The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

Source: Keppel Corporation

bp awards Wood multi-region contract to support efficient and safe energy production

Wood has been awarded a multi-region engineering services contract by bp to support efficient and safe energy production through the provision of asset repairs, modifications and enhancements.

The five-year reimbursable contract, valued at around $350m, will be delivered via agile working methods to optimise cost and delivery performance, enabling operational efficiencies to be realised across bp’s offshore installations.

This agreement renews Wood’s existing contracts in the regions to support bp to produce energy safely, efficiently, and reliably, as the world contends with the dual challenges of energy security and transition.

Craig Shanaghey, Executive President of Operations at Wood, said: “This opportunity is exciting for Wood because it has allowed us to think big, knowing that with bp’s own bold ambitions, we can help meet the world’s energy needs as efficiently as possible. Being able to truly leverage the breadth of experience and capability from right across our business will allow us to provide a solution that delivers transformational results.

“We have an extensive track record with bp and, for the first time, this multi-region approach allows us to combine these contracts into one single delivery model that puts exceptional execution, innovation, and simplification at its heart.“

Brian Chalmers, responsible for Wood’s global relationship with bp and President of Strategy and Development for Operations, said: “I am delighted that we will have the opportunity to drive a step change in the performance of bp’s offshore portfolio.

“We have proven that when we work in partnership, we can deliver transformational outcomes that support bp’s ambition to drive higher efficiency and productivity across their assets.”

This multi-region contract will be led by Wood’s Operations business unit with a centralised contract management team and local delivery teams, supported by Wood’s global execution centre.

Source: Wood

Saipem awarded new contracts in Ivory Coast worth approximately 1 billion euro overall

Saipem has been awarded two new contracts in Ivory Coast worth approximately 1 billion euro overall. The contracts have been assigned by the ENI Cote d’Ivoire-Petroci consortium for the Baleine Phase 1 Project, for the development of the relative oil and gas field offshore Ivory Coast located at a 1,200m water depth.

The Baleine Prospect represents the largest commercial discovery in the country in the last 20 years and it will contribute to energy production in Ivory Coast, strengthening the country’s role as a regional energy hub. Saipem contributed to the discovery of the field thanks to the drilling activities of the Saipem 10000 and Saipem 12000 vessels. 

The first contract entails Engineering, Procurement, Construction and Installation (EPCI) activities of Subsea Umbilicals, Risers and Flowlines (SURF) and of an onshore gas pipeline for the connection to the distribution grid.

The offshore laying of flexible lines, risers and umbilicals will be executed by Saipem’s flagship vessel FDS2 and the development of the project will be on a fast-track basis. The start of operations is planned for the fourth quarter of 2022.

The second contract – also developed with a fast-track schedule – encompasses Engineering, Procurement, Construction and Commissioning activities regarding the refurbishment of the Firenze FPSO vessel, plus 10 years of Operations and Maintenance services of the vessel.

The award of significant contracts in a new area with great potential such as Ivory Coast represents an important recognition of Saipem’s role as a contractor of excellence for the execution of complex projects requiring the integration of drilling, engineering and construction skills – both onshore and offshore – on a fast-track basis. These contracts also consolidate Saipem’s strategic positioning in West Africa.

Source: Saipem

QatarEnergy signs deal with TotalEnergies for North Field South Expansion

QatarEnergy announced that it has selected TotalEnergies as the first international partner in the North Field South (NFS) expansion project. The NFS project, which comprises 2 LNG mega trains with a combined capacity of 16 million tons per annum (MTPA), will raise Qatar’s total LNG export capacity to 126 MTPA.

The partnership agreement was signed by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, President and CEO of QatarEnergy, and Mr. Patrick Pouyanné, Chairman of the Board and CEO of TotalEnergies, during a ceremony held today at QatarEnergy’s headquarters in Doha and attended by senior executives from both companies.

Pursuant to the agreement, TotalEnergies will have an effective net participating interest of 9.375% in the NFS project (out of a total 25% interest available for international partners) while QatarEnergy will hold a 75% interest.In his remarks during the ceremony, H. E. Minister Al-Kaabi said: “QatarEnergy is moving forward, to help meet growing global demand for cleaner energy, of which LNG is the backbone for a serious and realistic energy transition. We are committing significant investments to lower the carbon intensity of our energy products, which constitutes a key pillar of QatarEnergy’s sustainability and energy transition strategy.”

“We will continue our efforts to power lives in every corner of the world for a better tomorrow for all,” His Excellency added.H.E. Minister Al-Kaabi welcomed TotalEnergies to this new project and said “I am pleased to welcome TotalEnergies yet again as a partner in our flagship LNG projects.”

In concluding his remarks, H.E. Minister Al-Kaabi said: “I would like to thank the working teams at QatarEnergy and TotalEnergies for their excellent cooperation that led to this agreement. I also would like to thank the Qatargas leadership and project teams for their efforts in implementing the North Field expansion projects on schedule, and with an outstanding safety record. Most importantly, we are forever grateful to the wise leadership of His Highness the Amir Sheikh Tamim bin Hamad Al Thani and for His unlimited support of Qatar’s energy sector.”

The North Field Expansion Project, comprising NFS and the North Field East (NFE) expansion projects, is the industry’s largest ever LNG project. It will start production in 2026 and will add more than 48 MTPA to the world’s LNG supplies. Five partnership agreements have been signed in June and July this year covering the NFE project, which comprises 4 mega LNG trains with a combined capacity of 32 MTPA.

This unique project is characterized by the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible. Other partners in the NFS project will be announced in due course.

Source: QatarEnergy

Doosan Enerbility Signs EPC Contract for Jafurah Cogeneration Plant Project in Saudi Arabia

Doosan Enerbility announced that it had signed a contract valued at approximately KRW 540 billion for the “Saudi Arabia Jafurah Cogeneration Plant” construction with Korea Electric Power Corporation (KEPCO). As the project developer, KEPCO will oversee the project development and operation, while Doosan in its role as EPC contractor will handle the overall process starting from design to the equipment supply, installation, and plant commissioning.

The Jafurah Cogeneration Plant is to be constructed at a location that is approximately 400km east of Riyadh, the capital of Saudi Arabia. It is scheduled to be built by the second half of 2025, and once it is set up, it is expected to have an electric power generation capacity of 320MW and steam generation capacity of 314 tons per hour, to ensure the supply of electricity and heat to the Jafurah Gas Field.

“Following on the heels of the Ukudu Combined Cycle Power Plant project in Guam that we won in 2020, we find it truly meaningful to be able to participate in another global new build project like this as a Team Korea member,” said Inwon Park, CEO of Doosan Enerbility’s Plant EPC Business Group. “Over the next five years, as it is forecast there will be close to 30GW worth of new orders for combined cycle power plants in the Middle East region, particularly in Saudi Arabia, we plan to strengthen our market targeting efforts in this region.”

Doosan Enerbility is steadily solidifying its position in the Saudi Arabian market as made evident in how it has won over KRW 2.3 trillion worth of new build orders in the region this year alone. A contract for the construction of a casting & forging facility valued to be KRW 1 trillion was won this past February and another KRW 840 billion contract for a seawater desalination plant was won in August this year.

Source: Doosan Enerbility 

McDermott Selected for Begonia Project by TotalEnergies EP Angola Block 17/06

McDermott International has been awarded a significant contract by TotalEnergies EP Angola Block 17/06 for engineering, procurement, supply, construction, installation, pre-commissioning and assistance to commissioning and start-up (EPSCI) on its Begonia Project. The Begonia field is located offshore Angola in water depth between 400 to 750 meters.

The Begonia Project will collect hydrocarbons from a reservoir, via a subsea-to-subsea tie-back to an existing floating production, storage and offloading (FPSO) unit. McDermott will provide all EPSCI services for subsea umbilicals, water injection and production flowlines. There are three production wells in total which are gathered through a multiphase production flowline, approximately 12 miles (20 kilometres) in length. The two water injection wells are connected back to an existing riser.

McDermott will utilize its diversified fleet of specialty marine construction vessels: The North Ocean 102 will install the umbilicals, and the Amazon will install the rigid pipelines using its world-class J-lay pipeline system and advanced technology.

“This award leverages our extensive subsea and deepwater expertise and is testament to our customer’s confidence in our newly converted, state-of-the-art Amazon vessel,” said Mahesh Swaminathan, Senior Vice President, Subsea and Deepwater for McDermott. “The Begonia Project represents our first subsea project in Angola and supports our strategic focus to grow our footprint in Africa.”

As part the company’s commitment to long-term growth and investment in Angola, McDermott plans to maximize the use of local suppliers and subcontractors throughout the project and provide training to develop a local workforce.

Project management and engineering will be executed from McDermott’s teams in London and Kuala Lumpur, Malaysia. The fabrication will be executed locally in Angola, West Africa.

Source: McDermott

Technip Energies Awarded an EPCC Contract for YURI Green Hydrogen Project in Australia

Technip Energies leader of a consortium with Monford Group, has been awarded an Engineering, Procurement, Construction and Commissioning (EPCC) contract by Yuri Operations Pty Ltd, to develop Project Yuri Phase 0 project which is a green hydrogen plant in the Pilbara region of Western Australia.

Project Yuri which is being developed in partnership with Yara Clean Ammonia and ENGIE includes a 10MW electrolysis plant and an 18 MW solar photovoltaic (PV) farm with its 8 MW Battery Energy System (BESS) providing the necessary energy for the electrolysis. It will produce up to 640 tonnes of green hydrogen per annum for use in the existing Yara Pilbara Ammonia Plant to produce green ammonia.

Technip Energies is responsible for the overall project management and the electrolysis plant engineering, procurement, commissioning and start up. Monford Group is responsible for the overall project construction and the PV farm engineering, procurement, commissioning and start up.

The Project has received grant funding from the Federal Government via ARENA, as part the Advancing Renewables Program and from Western Australia State Government as a part of Western Australian Renewable Hydrogen Fund.

Mitsui & Co. Ltd. (“Mitsui”) has agreed to acquire a 28 per cent stake in Yuri Operations Pty Ltd subject to the satisfaction of certain conditions under its investment agreement.

Laure Mandrou, SVP Carbon-Free Solutions of Technip Energies, stated: “We are very proud to be entrusted by ENGIE and Yara to deliver this flagship project. Yuri project is an important milestone paving the way for an accelerated deployment of green hydrogen capacity to decarbonise the industry. Technip Energies is engaged in playing a leading role in this journey and this award reinforces our position as a key enabler for integrated carbon-free hydrogen solutions. With our partner, Monford Group, we offer a very robust and competitive combination and are committed to make this project a reference for the industry.”

Ciaran Shannon, Chief Commercial Officer of Monford Group, commented: “Monford Group is proud to deliver the first renewable hydrogen plant in Western Australia alongside Technip Energies unlocking the Pilbara’s renewable energy potential and leading the path to a zero-carbon future.We are privileged to be part of this cornerstone project which will set a benchmark for Australia’s Green Hydrogen ambition delivery program. Monford Group is focused on decarbonisation and this project embodies the drive and ambition of the Monford team to provide an integrated solution to renewable project delivery.”

The project has been named as YURI, and the project plan has a multi-phase (Phase 0-I-II-III) roadmap (YURI Roadmap) which aims to establish a new industry value chain, harvesting the abundant renewable power in Western Australia, to make renewable hydrogen and ammonia as feedstock for renewable chemical production, as well as renewable fuel for power generation and shipping, serving local and export markets (Asia and beyond).

Source: Technip Energies

TechnipFMC Awarded Significant Subsea EPCI Contract by TotalEnergies for Lapa North East Development

TechnipFMC has been awarded a significant engineering, procurement, construction, and installation (EPCI) contract by TotalEnergies for its Lapa North East field in the pre-salt Santos Basin offshore Brazil.

TechnipFMC will reconfigure and install umbilicals and flexible pipe in a new configuration that will further secure the production of the field.

Jonathan Landes, President, Subsea, at TechnipFMC, commented: “The Brazilian offshore market is becoming more diverse with regard to work scope and customer opportunity.

On Lapa North East, we are working with a valued client with whom we have built a trusted relationship.

By offering the flexibility of a phased campaign, we are helping TotalEnergies accelerate its schedule and begin production sooner.”

Source: TechnipFMC

McDermott Awarded FEED Contract From Gunvor Petroleum

McDermott International, together with its storage business, CB&I, has been awarded a Front-End Engineering Design (FEED) contract from Gunvor Petroleum Rotterdam B.V. for the Green Hydrogen Import Terminal project. The project is part of Gunvor’s program to transform their Rotterdam facility into a green energy hub.

Under the contract scope, CB&I will provide the FEED of the ammonia tank and associated Inside Battery Limits (ISBL) equipment. McDermott will support with FEED activities for the interconnecting pipeline, tie-ins and other Outside Battery Limits (OSBL) scope. As part of the FEED, a project execution cost estimate will be developed as basis for a potential conversion into an engineering, construction and procurement (EPC) contract for the implementation phase.

“After successfully completing the feasibility study in 2021, we are well positioned to execute the next phase of this important green energy project,” said Tareq Kawash, Senior Vice President, Onshore of McDermott. “Our ability to bring together McDermott’s decades of project execution experience with CB&I’s expertise in design, engineering and construction of ammonia tanks make us the ideal partner for Gunvor.”

“This project represents a vital contribution to ensuring a reliable logistical chain for the growing green hydrogen market and ultimately meeting the Netherlands 2030 climate goals,” said  Cesar Canals, Senior Vice President, of CB&I. “As a world leader in the design and build of storage terminals, CB&I, together with McDermott, bring safety, quality and assurance.”

Work on the project will be executed from McDermott’s office in The Hague, the Netherlands and CB&I’s office in Plainfield, Illinois.

Source: McDermott

Shell, EGAS and Petronas award Idku Energy Hub project FEED to Bechtel-led coalition

Shell Egypt, EGAS and Petronas have awarded a front-end engineering and design (FEED) contract to a Bechtel-led coalition that includes Enppi and Petrojet to study a proposed unified power system between the onshore gas processing plant of the West Delta Deep Marine (WDDM) gas fields in the Mediterranean Sea off the coast of Egypt and the Egyptian LNG export terminal (ELNG) in Idku, east of Alexandria.

The FEED for the Idku Energy Hub project will explore the benefits of a One Power Hub concept, integrating the electrical power systems at the WDDM and ELNG, as opposed to having two separate systems. It seeks to increase the power saving and greenhouse gas abatement benefits of unifying the electrical power systems of the onshore plants. The synergies will include optimization of the number of running gas turbine generators, modelling the most efficient operating mode for both plants, reducing greenhouse gas emissions and economizing the fuel consumption in the entire hub.

This project is part of a wider program between the coalition and the Egyptian Ministry of Petroleum and Mineral Resources aiming to decarbonize existing oil and gas facilities across the country and deliver on its climate change strategy.

“I am so proud that the oil and gas sector is contributing significantly to achieving top strategic goals: accelerating decarbonization and economizing power consumption,” His Excellency Minister of Petroleum and Mineral Resources Eng.Tarek El-Molla said. “I am pleased that our partners are taking such initiatives to promote these priorities.”

“This project is a demonstration of our commitment to powering progress by providing more and cleaner energy,” Eng. Khaled Kacem, vice president and country chair of Shell Egypt, said. “As partners in Egypt’s journey to become a regional energy hub we are also mobilizing our efforts and expertise to support the country’s energy efficiency ambitions. This is also a significant step towards full implementation of the decarbonization Memorandum of Understanding between Shell and the Ministry that was signed earlier this year.”

“This project is an excellent example of private and public sector partnership to support Egypt’s decarbonization strategy,” Paul Marsden, president of Bechtel Energy said. “Our Bechtel team is looking forward to continuing to support Egypt’s climate change strategy.”

Bechtel, Enppi and Petrojet will execute the FEED on a fast-track basis aiming to complete the scope of work within 2022.

The project is a testimony to the operational excellence in WDDM and ELNG plants. Reducing greenhouse gas emissions and optimizing fuel consumption and running hours of the rotating equipment will enhance production and reduce operating cost.

Source: Bechtel 

ADNOC Announces $548 Million EPC Contract for a New Main Gas Line at its Lower Zakum Field

Abu Dhabi National Oil Company (ADNOC) announced the award of a $548 million (AED2.01 billion) contract to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi. The award will increase Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day (MMSCFD), supporting ADNOC’s plans to enable gas self-sufficiency for the United Arab Emirates (UAE) and cater for increasing global energy demand.

The Engineering, Procurement and Construction (EPC) contract was awarded by ADNOC Offshore to National Petroleum Construction Company (NPCC) after a competitive tender process. Over 75% of the award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program and job opportunities will be created for UAE Nationals by the contractor, providing them practical exposure in executing EPC contracts.

The new pipeline will cater for the increased volume of associated gas produced by Lower Zakum field as the field’s oil production capacity increases to 450,000 barrels of oil per day by 2025. 

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “This contract award will enable us to produce more gas as we increase production capacity from Lower Zakum field. This will support our integrated gas masterplan which is driving competitive gas recovery to enable gas self-sufficiency for the UAE and industrial growth, while also helping to meet the increasing global demand for energy. With over 75% in-country value resulting from the award, the project will further stimulate economic growth and create opportunities for the private sector, in line with the UAE Leadership’s wise directives.”

The project will be completed in 2025 and it will see the construction of a new subsea pipeline that will run 85 kilometers from Zakum West Super Complex to Das Island. It also includes provisions to construct, install and test a new platform at the super complex as well as a new gas receiving facility at Das Island.

Ahmad Saqer Al Suwaidi, ADNOC Offshore CEO, said: “Lower Zakum is a strategic asset for ADNOC and the UAE and working with our international partners, we will continue to responsibly unlock and maximize value from the field in line with ADNOC’s 2030 smart growth strategy. This award is an important part of the long-term development plan for the field and will help strengthen ADNOC’s position as a leading low-cost and low-carbon provider of energy for customers around the world.”

ADNOC’s gas masterplan links every part of the gas value chain to further unlock Abu Dhabi’s abundant gas reserves enabling domestic gas self-sufficiency, industrial growth and diversification, as well as to meet growing global gas demand. Natural gas is playing an increasingly important role in the energy transition as both a feedstock and a fuel as it burns with significantly lower-carbon intensity than coal. 

With this award, ADNOC Offshore and its strategic international partners have invested more than $5 billion in recent weeks in the long-term development of Abu Dhabi’s offshore operations. The awards included contracts worth more than $3.4 billion awarded to ADNOC Drilling to accelerate offshore growth activities and a $1.1 billion contract awarded to ADNOC Logistics and Services to enhance offshore operations.

Source: ADNOC

Keppel awards EPC Contract to Mitsubishi, Jurong for Singapore’s first hydrogen-ready power plant

Keppel Infrastructure Holdings Limited (Keppel Infrastructure), through its wholly owned subsidiary Keppel Energy, has reached final investment decision (FID) to develop a 600MW state-of-the-art, advanced combined cycle gas turbine (CCGT) power plant, and has awarded an engineering, procurement and construction (EPC) contract to a consortium comprising Mitsubishi Power Asia Pacific and Jurong Engineering for the construction of the plant. To be built in the Sakra sector of Jurong Island, the Keppel Sakra Cogen Plant will be the first hydrogen-ready power plant in Singapore.

In line with Keppel’s asset-light business model, the Keppel Sakra Cogen Plant will be owned by Keppel Sakra Cogen Pte. Ltd. (KSC)., presently a wholly-owned indirect subsidiary of Keppel Infrastructure. It is intended that Keppel Asia Infrastructure Fund LP (KAIF) (Note1) and Keppel Energy will hold 70% and 30% equity interests in KSC respectively. In addition, KSC and Keppel Energy are scheduled to enter into a turnkey contract for the development of the Keppel Sakra Cogen Plant. The total investment for the Keppel Sakra Cogen Plant is expected to be around S$750 million.

Running initially on natural gas as primary fuel, the Keppel Sakra Cogen Plant is also designed to operate on fuels with 30% hydrogen content and has the capability of shifting to run entirely on hydrogen. In addition, as a CCGT power plant, it will be able to produce steam, for use in industrial processes for the energy and chemicals customers on Jurong Island. Expected to be completed in 1H 2026, the Keppel Sakra Cogen Plant will be the most cutting-edge and energy efficient power plant in Singapore, which will translate into superior performance, such as lower emission intensity and higher operation flexibility. This advanced CCGT will be the most efficient among the operating fleet in Singapore and will be able to save up to 220,000 tons per year of CO2 as compared to Singapore’s average operating efficiency for equivalent power generated. Such savings in CO2 equivalent translates to taking about 47,000 cars off the road per year.

A long-term service (LTS) contract for major maintenance of the turbine was also awarded to Mitsubishi Power Asia Pacific.

With the energy sector accounting for almost 40% of Singapore’s carbon emissions(Note2), decarbonising electricity generation is at the core of the global climate change effort and one of the key features of Singapore’s Green Plan.

In addition to the EPC and LTS contracts, Keppel New Energy Pte Ltd, a wholly owned subsidiary of Keppel Infrastructure, also signed a memorandum of understanding (MOU) with Mitsubishi Heavy Industries, Ltd. to carry out a feasibility study on the development of a 100% ammonia-fuelled power plant on a selected site in Singapore. This collaboration seeks to address the energy trilemma and contribute to building a more resilient and sustainable energy sector in Singapore and the region.

The FID on the Keppel Sakra Power Plant as well as the MOU on 100% ammonia-fuelled combined cycle power plant are aligned with Keppel’s Vision 2030, which places sustainability at the core of the company’s strategy.

“Singapore’s electricity demand is projected to grow with increasing electrification and economic growth. As such, the Energy Market Authority welcomes investments by the private sector to bring in best-in-class technologies in power generation. Being hydrogen-ready, this power plant by Keppel will contribute towards greater efficiency and lower carbon emissions. This will support Singapore’s transition to a more sustainable energy future while ensuring the security and reliability of electricity supply to consumers,” said Mr. Ngiam Shih Chun, Chief Executive, EMA.

Ms Cindy Lim, CEO of Keppel Infrastructure, said, “The 600MW Keppel Sakra Cogen Plant will be Singapore’s first hydrogen-ready and most advanced, high-efficiency combined cycle gas turbine power plant, placing Keppel Infrastructure at the forefront of the effort to decarbonise Singapore’s power sector. When completed, this asset will grow Keppel’s power generation portfolio from the current 1,300 MW to 1,900 MW, allowing us to capture a larger market share as the demand for reliable energy continues to rise with Singapore’s economic development.”

Ms Christina Tan, CEO of Keppel Capital, the parent company of the manager of KAIF said, “The joint investment by Keppel Infrastructure and KAIF in the Keppel Sakra Cogen Plant reflects the Keppel Group’s asset-light business model as we seize opportunities in the energy transition. We believe that hydrogen, as a low-carbon fuel, will play a critical role in supporting Singapore’s commitment to decarbonise its power sector. Keppel Capital will continue to leverage the synergies of the Keppel Group to identify and invest in such future-ready projects to create value for our investors.”

Mr. Osamu Ono, Managing Director and Chief Executive Officer of Mitsubishi Power Asia Pacific, commented, “Mitsubishi Power looks forward to supplying the Keppel Sakra Cogen Plant with our hydrogen-ready JAC gas turbine. The plant will enjoy the unmatched combination of world-class efficiency and proven reliability backed by abundant operation hours of the fleet worldwide, T-Point 2 grid-connected combined cycle power plant verification facility located at Takasago Hydrogen Park in Japan, and our extensive experience with power generation using hydrogen-rich fuel for over half a century. As an innovative low- and zero-carbon fuel, there is immense potential for hydrogen to be used in power generation systems to enable emissions reduction. It is our honour to partner with Keppel Infrastructure, a visionary in the energy sector, to achieve our aligned net zero vision and build a sustainable energy future for Singapore.”

Mr. Koichi Watanabe, Managing Director and Chief Executive Officer of Jurong Engineering Limited, commented, “We are glad to have a hand in the establishment of the Keppel Sakra Cogen Plant that is part of a concerted effort towards the decarbonisation of our future power generation. Jurong Engineering will continue to diversify and strengthen our engineering capabilities by providing innovative solutions while contributing to a greener future.”

The abovementioned developments are not expected to have any material impact on its earnings per share and net tangible asset per share of Keppel Corporation Limited, the parent company of Keppel Capital and Keppel Infrastructure, for the current financial year.

Source: Mitsubishi Power